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Three top stock picks from ScotiaMcLeod’s Greg Newman

Greg Newman is director and senior wealth adviser, Newman Group, ScotiaMcLeod. His focus is on Canadian dividend stocks and protection strategies.

Top Picks:

Magna International (MG TSX)

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Magna earns a higher return on its assets yet trades at a discount to its peers. Enjoy stock buybacks and dividend growth while the valuation gap closes.

Peyto Exploration (PEY TSX)

Peyto Energy enjoys superior cash flow and production growth relative to its peers and its cost structure remains industry leading. We believe Peyto is capable of further dividend growth and capital appreciation from here.

Agrium Inc. (AGU TSX)

Agrium is trading below its five-year average at a time when future free cash flow growth appears significant and the company has room to further return capital to shareholders. Enjoy the 3-per-cent growing dividend while this story plays out.

Disclosure:

Personal

Family

Portfolio/Fund

MG

Y

Y

Y

PEY

Y

Y

Y

AGU

Y

Y

Y

Past Picks: July 29, 2013

Citigroup Inc. (C NYSE)

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Then: $51.64; Now: $49.23 -4.67%; Total return: -4.47%

TransCanada Corp. (TRP TSX)

Then: $47.07; Now: $54.98 +16.80%; Total return: +21.40%

MetLife Inc. (MET NYSE)

Then: $48.61; Now: $53.00 +9.03%; Total return: +11.67%

"Now" figures are intraday from the date of the analyst's appearance on BNN Market Call.

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Total return average: +9.53%

Disclosure:

Personal

Family

Portfolio/Fund

C

Y

Y

Y

TRP

Y

Y

Y

MET

Y

Y

Y

Market outlook:

Fed rate hike fears, geopolitical events and fears of European deflation may give the market a well-needed breather here. However, given the confluence of economic, technological and demographic forces, interest rates are likely to remain quite low for some time. Combined with overall improving global growth, equities remain compelling relative to bonds. Investors should buy companies that can continue to grow their dividends and businesses.

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